Daily Chart Art – June 21, 2010

I looked at the USDJPY daily chart and noticed that there’s a descending trend line connecting the pair’s lower highs. At the same time, there’s also a rising trend line joining the pair’s higher lows. Well, that’s a symmetrical triangle forming right there! This consolidation pattern signals that a breakout is bound to happen soon. In the meantime, the pair could keep bouncing up and down inside the triangle. With the pair aiming for the bottom of the triangle and with the stochastics nearly in the oversold region, upward price action could take place soon.

NZDUSD: Daily

Ooh, there are plenty of technical signals on the NZDUSD’s daily chart! First, the pair just broke above the neckline of those double bottoms, suggesting that the pair could keep moving higher. However, there’s a falling trend line connecting the highs and this could serve as a resistance for the pair’s rally. But with the stochastics in the overbought zone, the pair’s climb might be short-lived. If it drops, it could find support at the area of interest around the broken neckline.

CADJPY: 4-hour

Lastly, let’s see what’s been going on with the CADJPY. The pair seems to have formed a descending channel over the past two weeks. Currently, the pair appears to be finding resistance at the top of the channel. Will it hold or is there a breakout in the making? With stochastics nearing overbought conditions, we may see sellers jump back in and bring price back down to the middle of the channel around 88.00. On the other hand, if buying pressure remains strong, we could see a test of the former high at 89.80.

About Big Pippin

This is the true story of one man, picked to live in front of his computer screen and find ways to make money from trading money. See what happens when markets stop being polite and start being real! Using charts, I show how current currency price action is playing out and chart patterns forming.

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